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Thursday, 21 August 2008 |
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Steve & Barry's LLC, the discount retailer that collapsed into bankruptcy earlier this summer, will survive as a going concern. As
expected, Bay Harbour Management LC was the successful bidder at the auction on Tuesday. BH S&B Holdings, the newly-formed affiliate of Bay Harbour, purchased the assets of Steve & Barry’s out of bankruptcy for $168 million. The New York-based investment firm will keep about 150 of the chain's 276 stores, according to the Bay Harbour managing principal Douglas Teitelbaum. The deal is subject to bankruptcy-court approval and expected to be completed on August 25th.
Under the terms of the agreement, the stores will continue to offer collections created with entertainers and athletes including Sarah Jessica Parker, Venus Williams, Amanda Bynes, Laird Hamilton, Ben Wallace and Bubba Watson, all of which are produced under licensing relationship with Steve & Barry's. Most of these celebrities will continue to work with the company. Ms Parker has expressed support for the company to the Wall Street Journal and has indicated she will continue to sell her Bitten clothing through Steve & Barry's. Also according to the Wall Street Journal, professional basketball star Stephon Marbury is less supportive, as he has filed a lawsuit against the company. Mr. Marbury said he is owed more than $2 million in unpaid royalties.
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